Metals X seeking over $32m to revive Nifty

Copper and tin producer Metals X has launched a $32.7 million capital raising to turn around its struggling Nifty copper operation, less than three weeks after it refreshed its board to head off a revolt by its largest shareholder.

Metals X will split the capital raising into a $15.5 million share placement and a one-for-six rights issue to raise $17.2 million.

The share placement will raise funds at 15 cents per share, representing a 21.1 per cent discount to its previous closing price.

The company said the funds raised will go towards its Nifty reset plan.

Metals X has struggled to record healthy production results from the Nifty underground mine since it acquired the asset in 2016 via an $86 million hostile takeover of India’s Aditya Birla Minerals.

In May, Metals X said it plans to spend $163 million to sharpen up the performance of the east Pilbara project.

On September 2, Metals X non-executive director Milan Jerkovic resigned from the board and chariman Peter Newton indicated he would step down at its annual general meeting.

A day later the company told the ASX it had received a 249D notice from major shareholder APAC Resources requesting Brett Smith be appointed to the board as a director and Mr Newton resign.

Hong Kong-based APAC urged other shareholders to support the motion, stating a board refresh is needed as the company has spent $143 million on Nifty since acquisition but production has more than halved.

Additionally, it stated its share price performance has been extremely poor, falling 76 per cent since November 2016.

Following announcement of the planned departure of Mr Newton and the resignation of Mr Jerkovic, APAC boosted its shareholding in Metals X from 9.2 per cent to 10.5 per cent.